S. Korea, Saudi Arabia Agree To Boost Oil Cooperation To Ensure Stable Supply - Ministry

Mohammad Ali (@ChaudhryMAli88) Published November 02, 2022 | 06:46 PM

South Korea and Saudi Arabia have agreed to boost energy cooperation to ensure stable oil supplies after the decision by the Organization of the Petroleum Exporting Countries Plus to cut oil production by 2 million barrels per day, the South Korean Ministry of Trade, Industry and Energy said on Wednesday

MOSCOW (UrduPoint News / Sputnik - 02nd November, 2022) South Korea and Saudi Arabia have agreed to boost energy cooperation to ensure stable oil supplies after the decision by the Organization of the Petroleum Exporting Countries Plus to cut oil production by 2 million barrels per day, the South Korean Ministry of Trade, Industry and Energy said on Wednesday.

"During the meeting, the two sides stressed the need for cooperation between oil suppliers and importing nations to stabilize the oil market. They also made sure that they are credible trading partners and agreed to continue close work in energy to ensure stable supply chains," the ministry said in a statement, as quoted by the Yonhap news agency.

The negotiations were held via teleconference between South Korean Industry Minister Lee Chang-yang and Saudi Energy Minister Abdulaziz bin Salman, according to the report.

In early October, OPEC+ unanimously agreed to decrease oil production by 2 million barrels per day starting in November in response to uncertainty in global energy markets. Saudi Arabia said that the decision to slash oil production was to stabilize the global market amid declining demand caused by slowing economies around the world.

Since 2021, energy prices have been surging worldwide as the global economy rebooted after the pandemic. The growth increased after the European Union and other Western states imposed sanctions on Russian oil and gas, disrupting supply chains amid surging demand. A price cap on Russian seaborne oil, suggested by the G7 and expected to be implemented in December, and the decision by OPEC+ to curb production also strained the already tense global energy situation.